XML 30 R11.htm IDEA: XBRL DOCUMENT v3.19.1
Revenue from Contracts with Customers
12 Months Ended
Dec. 31, 2018
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers
2. REVENUE FROM CONTRACTS WITH CUSTOMERS

The following table summarizes revenue from contracts with customers:
thousands
 
Year Ended 
 December 31, 2018
Revenue from customers
 
 
Service revenues – fee based
 
$
1,905,728

Service revenues – product based
 
88,785

Product sales
 
310,895

Total revenue from customers
 
2,305,408

Revenue from other than customers
 
 
Net gains (losses) on commodity price swap agreements
 
(7,875
)
Other
 
2,125

Total revenues and other
 
$
2,299,658

 

2. REVENUE FROM CONTRACTS WITH CUSTOMERS (CONTINUED)

Contract balances. Receivables from customers, which are included in Accounts receivable, net on the consolidated balance sheets were $214.3 million and $244.9 million as of December 31, 2018 and 2017, respectively.
Contract assets primarily relate to accrued deficiency fees WES expects to charge customers once the related performance periods are completed and revenue accrued but not yet billed under cost of service contracts with fixed and variable fees. The following table summarizes the current period activity related to contract assets from contracts with customers:
thousands
 
 
Balance at December 31, 2017
 
$

Cumulative effect of adopting Topic 606
 
5,950

Amounts transferred to Accounts receivable, net from contract assets recognized in the adoption effect
 
(4,952
)
Additional estimated revenues recognized
 
30,519

Cumulative catch up adjustment for change in estimated consideration due to cost of service rate updates
 
16,104

Balance at December 31, 2018
 
$
47,621

 
 
 
Contract assets at December 31, 2018
 
 
Other current assets
 
$
5,399

Other assets
 
42,222

Total contract assets from contracts with customers
 
$
47,621



Contract liabilities primarily relate to (i) fees that are charged to customers for only a portion of the contract term and must be recognized as revenues over the expected period of customer benefit, (ii) fixed and variable fees under cost of service contracts that are received from customers for which revenue recognition is deferred and (iii) aid in construction payments received from customers that must be recognized over the expected period of customer benefit. The following table summarizes the current period activity related to contract liabilities from contracts with customers:
thousands
 
 
Balance at December 31, 2017
 
$

Cumulative effect of adopting Topic 606
 
120,309

Cash received or receivable, excluding revenues recognized during the period
 
55,786

Assets received from customer
 
12,933

Revenues recognized during the period that were included in the adoption effect (1)
 
(21,556
)
Cumulative catch up adjustment for change in estimated consideration due to cost of service rate updates
 
(21,848
)
Balance at December 31, 2018
 
$
145,624

 
 
 
Contract liabilities at December 31, 2018
 
 
Accrued liabilities
 
$
16,235

Other liabilities
 
129,389

Total contract liabilities from contracts with customers
 
$
145,624


(1) 
Includes $(7.5) million from a performance obligation satisfied in a previous period related to the arbitration against SWEPI LP (see Note 14).
2. REVENUE FROM CONTRACTS WITH CUSTOMERS (CONTINUED)

Transaction price allocated to remaining performance obligations. Revenues expected to be recognized from certain performance obligations that are unsatisfied (or partially unsatisfied) as of December 31, 2018, are reflected in the following table. WGP applies the optional exemptions in Topic 606 and does not disclose consideration for remaining performance obligations with an original expected duration of one year or less or for variable consideration related to unsatisfied (or partially unsatisfied) performance obligations. Therefore, the following table represents only a portion of expected future revenues from existing contracts as most future revenues from customers are dependent on future variable customer volumes and, in some cases, variable commodity prices for those volumes.
thousands
 
 
2019
 
$
674,609

2020
 
847,045

2021
 
894,706

2022
 
947,310

2023
 
913,099

Thereafter
 
4,565,428

Total
 
$
8,842,197